* Banks need 25-70 billion euros to recapitalise
* Government to propose 9 billion euro fund
MADRID, June 8 (Reuters) - Spanish banks need 25-70 billion euros ($35-97 billion) to recapitalise, according to a study by PriceWaterhouseCoopers on Monday.
Banks' non-performing loans ratio could hit 7-8 percent by the end of this year, up almost four times from the end of 2008, PriceWaterhouseCoopers said.
Economy Minister Elena Salgado told a newspaper on the weekend that the government had proposed a 9 billion euro bank restructuring fund and hoped to pass the measure through Congress in June,
Details of the fund, which would be run by the Bank of Spain, followed comments by Prime Minister Jose Luis Rodriguez Zapatero on Friday that some Spanish savings banks face problems after the collapse of the housing boom. He said the government would help them get through the next two to three difficult years. ($1=.7230 Euro) (Reporting by Jesus Aguado; writing by Jason Webb; editing by Jon Loades-Carter)